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Justin Sun accuses Filecoin to be an exit scam

Photo of: Sangeetha Golchha
by Sangeetha Golchha

After the launch of Filecoin mainnet, CEO of Tron Foundation and BitTorrent Justin Sun accused the Filecoin developers of employing an exit scam strategy by selling 1.5 million of their FIL tokens at a steep price of $200, without any consent from the community. It is not clear how Justin Sun has calculated the aforementioned selling price. However, tagging the U.S. agency SEC, Sun alleged in a tweet:

The Filecoin mainnet launch met with much excitement and enthusiasm in the crypto circles including the end-users. Filecoin is a decentralized information storage project that finally launched its mainnet at block 148,888. The launch of its mainnet comes three years after Filecoin’s ICO offering back in 2017. The process surrounding the launch of its mainnet has been delayed for some time now and matters became worse when Protocol Labs, its parent company had to face fire from the investors for the delay. 

But now that the launch has been executed, CEO of Tron Foundation and BitTorrent’s Justin Sun has made a huge accusation. He has accused the Filecoin developers of using an exit scam strategy by selling 1.5 million of their FIL tokens at an exorbitant price of $200 and all this without evening bothering to get the consent of the community!

As of now, Justin Sun’s arrival at the price of $200 is still unclear but in his latest tweet, he has tagged SEC and wrote: 

Source: Twitter

In order to substantiate his arguments, he also had attached a screenshot of the account of Filecoin’s founder. The screenshot shows that the founder’s account has indeed received 1.5 million FIL on October 15th which also happens to be the same day when Filecoin mainnet was launched. But, the screenshot also shows that later, 800,000 FIL tokens were transferred to the crypto exchange Huobi. Sun mentioned that this transfer has actually led to the price drop of the FIL token. 

Source: Justin Sun

Justin Sun has asked the investors to hold Filecoin founder responsible for this. He said,

The CEO has asked investors to hold the Filecoin founder responsible and said in a tweet: 

All dumped to the exchanges without community consent. The investors in the exchange, especially United States investors, should make sure @Filecoin. @juanbenet is held responsible for this under the protection of @SEC_Enforcement

But the crypto Twitterati have remained divided on the accusations thrown by Sun. ShapeShift CEO Erik Voorhees has tweeted:

“This is close to Craig Wright’s level of lameness dude.”

But in reply, Justin Sun still sounding unconvinced tweeted:

Everyone in @filecoin, including miners, investors, and founders, should follow the linear vestings rules here: https://coinlist.co/filecoin. Breaking the vesting rules has serious legal and compliance consequences. Do you really think dumping like this is ok?

Filecoin has not published any statement with respect to the accusations yet. Tron in the past has been accused often of pulling up such marketing gimmicks and after these accusations, it raises the relevant question of whether all of it is real or just another trick!